Well I'm back after doing a lot of research about 457 deferred comp plans. Bottom line: I wish I didn't have one, I think. Since my question was originally whether to continue to plunk down my $200/month into VALIC (not matched by my employer by the way) or take that money and invest in an index fund or directly into the stock market, I looked at Step 4 and tried to calculate that comparison. Then I realized that I had no idea how to figure out the rate of return on my fund allocation at VALIC, since they are subaccounts, not the real thing (that does make a difference doesn't it?). At any rate, even though I did select some ostensibly decent funds, I haven't made anything. Most of what is in my account is principal. Given the state of things in the market these days, how do I even make a valid comparison??Granted I have only been contributing for 1 1/2 yrs but with only 10 years until retirement (hah!) I need to be somewhat aggressive. I do have some other sources for retirement income, a pension and a recent inheritance looking for a place to land, but I really need to make a decision about this deferred comp money.Would I be better to put it into an IRA at this point? The yearly contribution would almost be the same...Any assistance would be greatly appreciated.

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.

Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.